-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
UAL reported Q1 2026 adjusted EPS of $1.19 (+31% Y/Y), beating the $1.08 consensus estimate, due to total revenue of $14.6B (+11% Y/Y), above the $14.4B consensus. Operating margins proved resilient at 4.2% (+35 bps Y/Y) despite a $360M fuel cost headwind, with strong pricing power evidenced by TRASM rising 6.9% Y/Y to 18.80 cents and PRASM advancing 7.4% Y/Y to 16.95 cents. UAL's premium revenue streams supported results with premium revenue growing 14% Y/Y, loyalty revenue up 13% Y/Y, and business revenue expanding 14% Y/Y. The company reduced 2026 adjusted EPS guidance to $7.00-$11.00 from $12.00-$14.00 and plans to reduce capacity by 5 percentage points for the remainder of 2026. Management expects a phased revenue recovery approach to recapture 40%-50% of fuel cost increases in Q2, 70%-80% in Q3, and 85%-100% in Q4. We think Q1 provided evidence of UAL's ability to pass through fuel costs while maintaining its long-term growth trajectory.